“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Biogen Inc (NASD: BIIB)? Today, we examine the outcome of a ten year investment into the stock back in 2012.
| Start date: | 05/04/2012 |
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| End date: | 05/03/2022 | ||||
| Start price/share: | $130.97 | ||||
| End price/share: | $205.70 | ||||
| Starting shares: | 76.35 | ||||
| Ending shares: | 76.35 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 57.06% | ||||
| Average annual return: | 4.62% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,710.89 | ||||
The above analysis shows the ten year investment result worked out as follows, with an annualized rate of return of 4.62%. This would have turned a $10K investment made 10 years ago into $15,710.89 today (as of 05/03/2022). On a total return basis, that’s a result of 57.06% (something to think about: how might BIIB shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.” — Benjamin Graham
